New ask Hacker News story: Ask HN: C-Corp or LLC for idea stage startup?
Ask HN: C-Corp or LLC for idea stage startup?
2 by mattcheston | 3 comments on Hacker News.
Let's say you have an idea that you want to start building in earnest, maybe with a partner, and you want to incorporate to gain all the benefits that entails. Do you choose a C-Corp or LLC? As far as I can tell: C-Corp: - More attractive to potential investors? - Already in the "correct" form for many shareholders and future investment (see above). LLC: - Easier incorporation, tax filing, and day one operations. - Lower cost of incorporation. - Potentially a negative signal to investors? (Though some say that for most investors in the right company, they won't care that you have a step to convert to a C-Corp). Convince me one way or another? I suspect that my partner is more interested in forming an LLC, and is also potentially spending too much time on things like incorporation before validating the idea.
2 by mattcheston | 3 comments on Hacker News.
Let's say you have an idea that you want to start building in earnest, maybe with a partner, and you want to incorporate to gain all the benefits that entails. Do you choose a C-Corp or LLC? As far as I can tell: C-Corp: - More attractive to potential investors? - Already in the "correct" form for many shareholders and future investment (see above). LLC: - Easier incorporation, tax filing, and day one operations. - Lower cost of incorporation. - Potentially a negative signal to investors? (Though some say that for most investors in the right company, they won't care that you have a step to convert to a C-Corp). Convince me one way or another? I suspect that my partner is more interested in forming an LLC, and is also potentially spending too much time on things like incorporation before validating the idea.
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